Empire Petroleum Reports Results for Fourth Quarter and Full Year 2024 and Provides Operational Updates
TULSA, Okla.--(BUSINESS WIRE)--March 27, 2025--
Empire Petroleum (NYSE American: EP) ("Empire" or the "Company"), an oil and gas company with producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana, today reported operational and financial results for the fourth quarter and full year 2024, including year-end 2024 proved reserves.
FOURTH QUARTER AND FULL YEAR 2024 HIGHLIGHTS
-- Produced Q4-2024 net production volumes of 2,356 barrels of oil
equivalent per day ("Boe/d") including 1,581 barrels of oil per day
("Bbl/d");
-- 22% increase of BBl/d comparing Q4-2024 vs. Q4-2023;
-- Boe/d is comprised of 67% oil, 17% natural gas liquids ("NGLs"),
and 16% natural gas;
-- Since initiating phase one of Enhanced Oil Recovery ("EOR") efforts in
the Starbuck Drilling Program ("Starbuck") in North Dakota, Empire
remains committed to leveraging advanced recovery technologies to
optimize production and convert additional wells into injectors;
-- In Q4-2024, Empire secured approval from the North Dakota
Industrial Commission ("NDIC") to convert two more oil wells into
injectors, further advancing its EOR strategy;
-- Converting three wells lowered the Company's short-term production,
while better positioning Empire for long-term production growth;
-- In Q4-2024, Empire officially filed a provisional patent application with
the United States Patent and Trademark Office in connection with a
technology it developed in relation to hydrocarbon vaporization;
-- The Company continues to advance the final design of the patent in
preparation for field deployment;
-- Initial results from the 30-day peak period showed more than a
700% increase in Starbuck production, achieved using only
temporary solutions at that time;
-- Final fabrication was 30% complete to the target design and Empire
expects the intellectual property ("IP") to be developed over the
next 90-120 days;
-- As Empire continues to expand its technical focus into its Texas region,
the Company successfully completed initial infrastructure to begin a new
drilling program in Texas, which is expected to begin in 2025;
-- Year-end 2024 proved reserves were approximately 9.2 million barrels of
oil equivalent ("MMBoe"), and the standardized measure of SEC proved
reserves discounted at 10% was $98.4 million;
-- At year-end 2024, future net cash flows without the 10% discount
applied was approximately $156.4 million;
-- Empire successfully completed two rights offerings in 2024, both anchored
by its largest shareholders and bolstered by additional shareholder
participation, reflecting optimism in Empire's long-term growth strategy;
-- In Q1-2024, Empire launched a $20.7 million rights offering
("April Rights Offering") at $5.00 per share, and due to strong
demand, the offering was ultimately oversubscribed upon its
conclusion in Q2-2024;
-- Following this success, the Company completed a second rights
offering ("November Rights Offering") in Q4-2024, raising an
additional $10.0 million at $5.05 per share, which was also
oversubscribed, underscoring shareholder confidence in the
Company's operational and financial outlook;
-- In Q4-2024, Empire increased its revolving credit facility with Equity
Bank from $10.0 million to $20.0 million, with the expansion immediately
providing over $11.0 million in additional capacity, which highlights the
strong relationship with Equity Bank and the financial institution's
continued confidence in the Company's performance and growth trajectory;
and
-- Reported full year 2024 total product revenue of $44.0 million, a net
loss of $16.2 million, or ($0.54) per diluted share;
-- Adjusted EBITDA of $0.7 million for full year 2024 compared to
($2.4) million in 2023;
-- Loss is primarily related to operational challenges on the initial
production optimization associated with the EOR in North Dakota.
Empire anticipates resolving these non-recurring production issues
in Q2-2025.
2025 OUTLOOK
"As an emerging, agile company, Empire Petroleum has a unique ability to pivot quickly as we receive new data and insights. This flexibility is a tremendous advantage in the dynamic energy sector, allowing us to efficiently allocate capital and resources to the most promising opportunities where they will have the greatest impact," said Phil Mulacek, Chairman of the Board of Empire. "Each new set of data and developments strengthens our confidence in our forward plan, ensuring the best results for our shareholders."
Mike Morrisett, President and CEO, added "with assets spanning multiple regions, Empire has the ability to shift our focus based on the latest geological, operational, and technical information. We continue to build on our progress in Starbuck and drive responsible energy development. At the same time, we are actively integrating new information to refine our approach ensuring that we adapt to evolving conditions while optimizing our performance. We are confident this level of adaptability positions us well for long-term success."
North Dakota -- Williston Basin:
-- Empire anticipates completing the final equipment portion of the first
EOR phase, which should allow the Company to increase production to its
original levels, and as the technology is implemented, Empire anticipates
production growth; and
-- In February 2025, Empire secured NDIC approval for five new drilling
permits for horizontal wells, as the Company continues to advance its
growth strategy.
New Mexico -- Permian Basin:
-- From Q4-2024 to Q1-2025, Empire completed 19 workovers in the region,
underscoring the Company's commitment to maximizing well productivity,
extending asset life, and optimizing operational output;
-- The work completed during this period ensures continued production
and mitigates a potential decline; and
-- Empire continues the legal and regulatory actions against a third-party
trespassing on the New Mexico water floods.
Texas -- East Texas Basin:
-- Empire will continue to use new technology, including the technical IP
developed in other areas, which will allow the Company to expand its
capacity for potential new joint ventures benefiting Empire and the
companies it partners with.
FOURTH QUARTER AND FULL YEAR 2024 FINANCIAL AND OPERATIONAL RESULTS
% Change Q4-24 % Change Q4-24
Q4-24 Q3-24 vs. Q3-24 Q4-23 vs. Q4-23
-------- -------- -------------- -------- ---------------
Net equivalent
sales (Boe/d) 2,356 2,460 -4% 2,011 17%
Net oil sales
(Bbls/d) 1,581 1,573 1% 1,294 22%
Realized price
($/Boe) $46.48 $48.12 -3% $53.50 -13%
Product Revenue
($M) $10,076 $10,892 -7% $9,898 2%
Net Loss ($M) ($4,193) ($3,640) -15% ($4,797) 13%
Adjusted Net
Loss ($M)(1) ($4,193) ($3,829) -10% ($5,753) 27%
Adjusted EBITDA
($M)(1) ($260) ($56) -362% ($2,917) 91%
__________________________________
(1) Adjusted net loss and adjusted EBITDA are non-GAAP financial measures. See
"Non-GAAP Information" section later in this release for more information,
including reconciliations to the most comparable GAAP measure.
Net sales volumes for Q4-2024 were 2,356 Boe/d, including 1,581 barrels of oil per day; 397 barrels of NGLs per day, and 2,268 thousand cubic feet per day ("Mcf/d") or 378 Boe/d of natural gas. Oil sales volumes for 2024 increased compared to prior year by approximately 93,000 barrels or 19% primarily due to new wells completed in North Dakota during Q3-2024 as well as the acquisition of additional working interest in New Mexico.
Empire reported 2024 total product revenue of $44.0 million versus $40.1 million in 2023. Contributing to the increase were higher oil sales volumes in North Dakota due to the Company's Starbuck Drilling Program offset by a slight decline in commodity prices.
Lease operating expenses in 2024 decreased to $27.5 million versus $28.6 million for 2023, primarily due to lower workover activities of $5.9 million in 2024 compared to $12.0 million for 2023, partially offset by higher expenses related to an increase in production. Higher workover expense in 2023 was primarily related to work performed on wells in New Mexico to workover wells in the region to enhance and maintain production. These costs are part of the damages Empire seeks to recover under litigation.
Production and ad valorem taxes for 2024 were $3.8 million versus $3.0 million in 2023, as a result of higher product revenues.
Depreciation, Depletion, and Amortization ("DD&A") and Accretion for 2024 was $11.3 million versus $4.9 million for 2023. The increase in DD&A reflects higher production, the acquisition of additional working interest in New Mexico and the impact of the capitalized costs associated with new drilling activity in North Dakota. Accretion increased slightly due to new drilling activity related to the Starbuck Drilling Program.
General and administrative expenses, excluding share-based compensation expense, was $12.6 million, or $14.23 per Boe in 2024 versus $12.0 million, or $15.71 per Boe in 2023. The slight increase in expenses was primarily due to an increase in salaries and benefits associated with an increase in employee headcount.
Interest expense for 2024 was $1.5 million compared to $1.0 million for 2023, a slight increase due to a higher outstanding balance under the Company's credit facility offset by lower interest rates.
Empire recorded a net loss of $16.2 million in 2024, or ($0.54) per diluted share, versus a 2023 net loss of $12.5 million, or ($0.55) per diluted share.
Adjusted EBITDA was $0.7 million for 2024 compared to Adjusted EBITDA of ($2.4) million in 2023.
YEAR-END 2024 PROVED RESERVES
The Company's year-end 2024 SEC proved reserves were 9.2 MMBoe compared to 9.1 MMBoe at year-end 2023. The Company recorded 0.4 MMBoe for acquisitions/revisions and (0.3) MMBoe for extensions/production.
Year-end 2024 SEC proved reserves were comprised of approximately 76% crude oil, 13% NGLs, and 11% natural gas.
Oil (MMBbls) Gas (MMcf) NGLs MBOE
------------ ---------- ------ ---------
Balance, December 31, 2022 8,826 12,937 2,262 13,244
Acquisition of Reserves 36 19 5 44
Revisions (1,625) (5,998) (960) (3,585)
Extensions 175 - - 175
Production (488) (854) (136) (766)
----------- --------- ----- ------
Balance, December 31, 2023 6,924 6,104 1,171 9,112
Acquisition of Reserves 198 240 35 274
Revisions (90) 637 159 175
Extensions 550 - - 550
Production $(581.SI)$ (917) (150) (884)
----------- --------- ----- ------
Balance, December 31, 2024 7,001 6,064 1,215 9,227
=========== ========= ===== ======
The acquisition of reserves for 2024 and 2023 primarily relate to additional working interests in certain of the Company's New Mexico properties. The revisions for 2024 and 2023 primarily relate to changes in pricing and the extensions relate to increased volumes from our Starbuck Drilling Program.
The standardized measure of the Company's reported SEC proved reserves, discounted at 10%, at year-end 2024 was $98.4 million. As of December 31 for each year:
2024 2023
------------ ------------
Future cash inflows $ 537,303,424 $ 543,067,776
Future production costs (324,214,760) (350,439,800)
Future development costs (38,681,208) (42,475,160)
Future income tax expense (18,019,644) (25,201,886)
------------ ------------
Future net cash flows 156,387,812 124,950,930
10% annual discount for estimated
timing of cash flows (58,022,633) (41,934,370)
------------ ------------
Standardized measure $ 98,365,179 $ 83,016,560
============ ============
The 12-month average prices were adjusted to reflect applicable transportation and quality differentials on a well-by-well basis to arrive at realized sales prices used to estimate the properties' reserves. The prices for the properties' reserves were as follows:
2024 2023
------ ------
Oil (Bbl) $71.66 $75.45
Natural gas (MMBtu) $0.95 $1.51
NGLs (Bbl) $24.54 $9.82
Changes in the Standardized Measure of Discounted Future Net Cash Flows at 10% per annum are as follows as of December 31 for each year:
2024 2023
---------- -----------
Beginning of year $83,016,560 $147,667,413
Net change in prices and production costs (5,842,745) (71,619,375)
Net change in future development costs 220,549 3,314,220
Oil and gas net revenue (9,381,470) (6,256,366)
Extensions 11,255,319 4,684,473
Acquisition of reserves 1,890,863 526,848
Revisions of previous quantity estimates 6,675,903 (55,329,684)
Net change in taxes 4,274,178 33,317,731
Accretion of discount 9,746,049 19,542,907
Changes in timing and other (3,490,026) 7,168,393
---------- -----------
End of year $98,365,179 $ 83,016,560
========== ===========
CAPITAL SPENDING, BALANCE SHEET & LIQUIDITY
For 2024, Empire invested approximately $42.2 million in capital expenditures, primarily related to the continued drilling and completions activity in North Dakota.
As of December 31, 2024, Empire had approximately $2.3 million in cash on hand and approximately $8.7 million available on its credit facility.
Successful completion of the November Rights Offering in November 2024 with Empire receiving gross proceeds of $10.0 million at $5.05 per share.
UPDATED PRESENTATION
An updated Company presentation will be posted to the Company's website under the Investor Relations section.
ABOUT EMPIRE PETROLEUM
Empire Petroleum Corporation is a publicly traded, Tulsa-based oil and gas company with current producing assets in New Mexico, North Dakota, Montana, Texas, and Louisiana. Management is focused on organic growth and targeted acquisitions of proved developed assets with synergies with their existing portfolio of wells. More information about Empire can be found at www.empirepetroleumcorp.com.
SAFE HARBOR STATEMENT
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements involve a wide variety of risks and uncertainties, and include, without limitations, statements with respect to the Company's estimates, strategy, and prospects. Such statements are subject to certain risks and uncertainties which are disclosed in the Company's reports filed with the SEC, including its Form 10-K for the fiscal year ended December 31, 2024, and its other filings with the SEC. Readers and investors are cautioned that the Company's actual results may differ materially from those described in the forward-looking statements due to a number of factors, including, but not limited to, the Company's ability to acquire productive oil and/or gas properties or to successfully drill and complete oil and/or gas wells on such properties, general economic conditions both domestically and abroad, uncertainties associated with legal and regulatory matters, and other risks and uncertainties related to the conduct of business by the Company. Other than as required by applicable securities laws, the Company does not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations, or otherwise.
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended Year Ended
---------------------------------------- ----------------------------
September
December 31, 30, December 31, December 31,
------------ ------------ ------------ ----------------------------
2024 2024 2023 2024 2023
------------ ------------ ------------ ------------- -------------
Revenue:
Oil Sales $ 9,445,145 $ 10,341,280 $ 9,106,041 $ 41,515,661 $ 36,684,494
Gas Sales 73,659 8,547 410,816 343,503 1,726,754
Natural Gas Liquids
("NGLs") Sales 557,671 541,755 381,497 2,132,666 1,660,256
----------- ----------- ----------- ------------ ------------
Total Product
Revenues 10,076,475 10,891,582 9,898,354 43,991,830 40,071,504
Other 10,766 15,269 15,705 47,348 70,480
Gain (Loss) on
Derivatives - 470,717 1,253,708 (388,886) (65,693)
----------- ----------- ----------- ------------ ------------
Total Revenue 10,087,241 11,377,568 11,167,767 43,650,292 40,076,291
Costs and Expenses:
Lease Operating
Expense 5,881,309 6,733,611 7,956,264 27,545,028 28,625,481
Production and Ad
Valorem Taxes 886,838 984,075 772,781 3,770,078 3,044,411
Depletion,
Depreciation &
Amortization 2,492,783 2,596,360 1,035,059 9,256,254 3,096,533
Accretion of Asset
Retirement
Obligation 519,827 509,131 478,881 2,006,756 1,756,022
General and
Administrative
Expense:
General and
Administrative 3,712,825 3,635,917 4,536,237 12,581,859 12,034,184
Stock-Based
Compensation 519,060 335,077 855,514 2,155,774 3,144,751
----------- ----------- ----------- ------------ ------------
Total General and
Administrative
Expense 4,231,885 3,970,994 5,391,751 14,737,633 15,178,935
Total Cost and Expenses 14,012,642 14,794,171 15,634,736 57,315,749 51,701,382
----------- ----------- ----------- ------------ ------------
Operating Loss (3,925,401) (3,416,603) (4,466,969) (13,665,457) (11,625,091)
Other Income and
(Expense):
Interest Expense (268,694) (196,306) (328,445) (1,515,269) (1,000,427)
Other Income
(Expense) 687 (26,705) 465 (1,017,263) 23,721
----------- ----------- ----------- ------------ ------------
Loss before Taxes (4,193,408) (3,639,614) (4,794,949) (16,197,989) (12,601,797)
Income Tax
(Provision)
Benefit - - (2,528) - 132,192
----------- ----------- ----------- ------------ ------------
Net Loss $(4,193,408) $(3,639,614) $(4,797,477) $(16,197,989) $(12,469,605)
=========== =========== =========== ============ ============
Net Loss per Common
Share:
Basic $ (0.13) $ (0.12) $ (0.20) $ (0.54) $ (0.55)
=========== =========== =========== ============ ============
Diluted $ (0.13) $ (0.12) $ (0.20) $ (0.54) $ (0.55)
=========== =========== =========== ============ ============
Weighted Average Number of Common
Shares Outstanding:
Basic 33,034,333 31,619,333 23,912,271 30,064,856 22,718,890
=========== =========== =========== ============ ============
Diluted 33,034,333 31,619,333 23,912,271 30,064,856 22,718,890
=========== =========== =========== ============ ============
EMPIRE PETROLEUM CORPORATION
Condensed Operating Data
(Unaudited)
Three Months Ended Year Ended
------------------------------- ------------------
December September December
31, 30, 31, December 31,
--------- ---------- -------- ------------------
2024 2023 2023 2024 2023
--------- ---------- -------- -------- --------
Net Sales Volumes:
Oil (Bbl) 145,442 144,674 119,022 581,159 487,869
Natural gas (Mcf) 208,698 255,195 215,855 916,955 854,274
Natural gas liquids (Bbl) 36,556 39,137 30,011 150,091 136,013
-------- --------- ------- ------- -------
Total (Boe) 216,781 226,344 185,009 884,076 766,261
Average daily equivalent
sales (Boe/d) 2,356 2,460 2,011 2,416 2,099
Average Price per Unit:
Oil ($/Bbl) $ 64.94 $ 71.48 $ 76.51 $ 71.44 $ 75.19
Natural gas ($/Mcf) $ 0.35 $ 0.03 $ 1.90 $ 0.37 $ 2.02
Natural gas liquids ($/Bbl) $ 15.26 $ 13.84 $ 12.71 $ 14.21 $ 12.21
-------- --------- ------- ------- -------
Total ($/Boe) $ 46.48 $ 48.12 $ 53.50 $ 49.76 $ 52.29
Operating Costs and Expenses per
Boe:
Lease operating expense $ 27.13 $ 29.75 $ 43.00 $ 31.16 $ 37.36
Production and ad valorem
taxes $ 4.09 $ 4.35 $ 4.18 $ 4.26 $ 3.97
Depreciation, depletion,
amortization and accretion $ 13.90 $ 13.72 $ 8.18 $ 12.74 $ 6.33
General & administrative
expense:
General & administrative
expense (excluding
stock-based
compensation) $ 17.13 $ 16.06 $ 24.52 $ 14.23 $ 15.71
Stock-based compensation $ 2.39 $ 1.48 $ 4.62 $ 2.44 $ 4.10
Total general &
administrative expense $ 19.52 $ 17.54 $ 29.14 $ 16.67 $ 19.81
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Balance Sheets
December 31, December 31,
------------- ---------------
2024 2023
----------- -----------
ASSETS
--------------------------------------
Current Assets:
Cash $ 2,251,464 $ 7,792,508
Accounts Receivable 8,154,433 8,354,636
Derivative Instruments - 406,806
Inventory 1,304,699 1,433,454
Prepaids 640,349 757,500
----------- -----------
Total Current Assets 12,350,945 18,744,904
Property and Equipment:
Oil and Natural Gas Properties,
Successful Efforts 140,675,399 93,509,803
Less: Accumulated Depreciation,
Depletion and Impairment (31,974,184) (22,996,805)
----------- -----------
Total Oil and Gas
Properties, Net 108,701,215 70,512,998
Other Property and Equipment, Net 1,391,113 1,883,211
----------- -----------
Total Property and Equipment, Net 110,092,328 72,396,209
----------- -----------
Other Noncurrent Assets 1,425,198 1,474,503
----------- -----------
TOTAL ASSETS $123,868,471 $ 92,615,616
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
--------------------------------------
Current Liabilities:
Accounts Payable $ 10,452,237 $ 16,437,219
Accrued Expenses 10,347,990 7,075,302
Current Portion of Lease Liability 400,692 432,822
Current Portion of Note Payable -
Related Party - 1,060,004
Current Portion of Long-Term Debt 69,552 44,225
----------- -----------
Total Current Liabilities 21,270,471 25,049,572
Long-Term Debt 11,266,127 4,596,775
Term Note Payable - Related Party - -
Long-Term Lease Liability 143,689 544,382
Asset Retirement Obligations 28,423,000 27,468,427
----------- -----------
Total Liabilities 61,103,287 57,659,156
Stockholders' Equity:
Series A Preferred Stock - $.001
Par Value, 10,000,000 Shares
Authorized, 6 and 6 Shares Issued
and Outstanding, Respectively - -
Common Stock - $.001 Par Value,
190,000,000 Shares Authorized,
33,667,132 and 25,503,530 Shares
Issued and Outstanding,
Respectively 93,188 85,025
Additional Paid-in-Capital 143,488,803 99,490,253
Accumulated Deficit (80,816,807) (64,618,818)
----------- -----------
Total Stockholders' Equity 62,765,184 34,956,460
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $123,868,471 $ 92,615,616
=========== ===========
EMPIRE PETROLEUM CORPORATION
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended Year Ended
----------------------------------------- ------------------------------
December 31, September 30, December 31, December 31, December 31,
------------ ------------- ------------ ------------- ---------------
2024 2024 2023 2024 2023
---------- ----------- ---------- ----------- -----------
Cash Flows From
Operating
Activities:
Net Loss $(4,193,408) $ (3,639,614) $(4,797,477) $(16,197,989) $(12,469,605)
Adjustments to
Reconcile Net Loss
to Net Cash
Provided By (Used
In) Operating
Activities:
Stock-Based
Compensation 519,060 335,077 855,513 2,155,774 3,144,750
Amortization of
Right of Use
Assets 133,199 135,735 135,733 540,401 423,689
Depreciation,
Depletion and
Amortization 2,492,783 2,596,360 1,035,059 9,256,254 3,096,533
Accretion of
Asset
Retirement
Obligation 519,827 509,131 478,881 2,006,756 1,756,022
(Gain) Loss on
Derivatives - (470,717) (1,253,708) 388,886 65,693
Settlement on or
Purchases of
Derivative
Instruments - 281,530 (266,653) 18,200 (353,695)
Loss on
Financial
Derivatives - - - 998,000 -
Amortization of
Debt Discount
on Convertible
Notes - - - 500,382 -
(Gain) Loss on
Extinguishment
of Debt - 26,705 - 10,094 -
Change in
Operating
Assets and
Liabilities:
Accounts
Receivable (2,004,722) 2,277,310 (1,128,490) (357,473) (2,700,528)
Inventory,
Oil in
Tanks 194,507 (48,011) 131,230 128,755 (160,827)
Prepaids,
Current (64,009) 211,733 (165,768) 607,925 745,648
Accounts
Payable (7,254,138) 10,419,209 556,917 5,019,857 751,355
Accrued
Expenses 1,073,329 41,175 649,185 2,144,204 (3,082,928)
Other Long
Term Assets
and
Liabilities (176,799) 135,172 (160,691) (1,063,023) (1,103,607)
---------- ----------- ---------- ----------- -----------
Net Cash Provided By
(Used In) Operating
Activities (8,760,371) 12,810,795 (3,930,269) 6,157,003 (9,887,500)
---------- ----------- ---------- ----------- -----------
Cash Flows from
Investing
Activities:
Acquisition of
Oil and Natural
Gas Properties - - - - (2,094,419)
Additions to Oil
and Natural Gas
Properties (4,460,338) (18,615,643) (8,950,338) (53,219,169) (14,546,873)
Purchase of
Other Fixed
Assets (12,157) (19,590) (173,337) (151,638) (352,851)
Cash Paid for
Right of Use
Assets (122,943) (125,236) (124,485) (498,654) (552,196)
Sinking Fund
Deposit - - - - 2,779,000
---------- ----------- ---------- ----------- -----------
Net Cash Used In
Investing
Activities (4,595,438) (18,760,469) (9,248,160) (53,869,461) (14,767,339)
---------- ----------- ---------- ----------- -----------
Cash Flows from
Financing
Activities:
Borrowings on
Credit
Facility 2,700,000 - 4,492,484 6,650,000 4,492,484
Proceeds from
Promissory Note
- Related
Party - - - 5,000,000 -
Proceeds from
Rights
Offerings, net
of transaction
costs 9,972,959 - - 30,484,488 -
Proceeds from
Bridge Loans
from Related
Parties - - - - 10,000,000
Principal
Payments of
Debt (215,400) (158,383) (4,517,576) (591,975) (6,450,774)
Proceeds from
Stock Issuance
and Warrant
Exercises (2) - 9,961,195 628,901 12,461,195
---------- ----------- ---------- ----------- -----------
Net Cash Provided By
Financing
Activities 12,457,557 (158,383) 9,936,103 42,171,414 20,502,905
---------- ----------- ---------- ----------- -----------
Net Change in Cash (898,252) (6,108,057) (3,242,326) (5,541,044) (4,151,934)
Cash - Beginning of
Period 3,149,716 9,257,773 11,034,834 7,792,508 11,944,442
---------- ----------- ---------- ----------- -----------
Cash - End of Period $ 2,251,464 $ 3,149,716 $ 7,792,508 $ 2,251,464 $ 7,792,508
========== =========== ========== =========== ===========
Supplemental Cash
Flow Information:
Cash Paid for
Interest $ 894,282 $ 650,637
=========== ===========
Empire Petroleum Corporation
Non-GAAP Information
Certain financial information included in Empire's financial results are not measures of financial performance recognized by accounting principles generally accepted in the United States, or GAAP. These non-GAAP financial measures include "Adjusted Net Loss", "EBITDA" and "Adjusted EBITDA". These disclosures may not be viewed as a substitute for results determined in accordance with GAAP and are not necessarily comparable to non-GAAP performance measures which may be reported by other companies. Adjusted net loss is presented because the timing and amount of these items cannot be reasonably estimated and affect the comparability of operating results from period to period, and current periods to prior periods.
Three Months Ended Year Ended
---------------------------------------- ------------------------------
September
December 31, 30, December 31, December 31, December 31,
------------ ------------ ------------ ------------- ---------------
2024 2024 2023 2024 2023
---------- ---------- ---------- ----------- -----------
Net Loss $(4,193,408) $(3,639,614) $(4,797,477) $(16,197,989) $(12,469,605)
Adjusted for:
(Gain) loss on
derivatives - (470,717) (1,253,708) 388,886 65,693
Settlement on or
purchases of
derivative
instruments - 281,530 (266,653) 18,200 (353,695)
(Gain) loss on
financial
derivatives - - - 998,000 -
CEO severance
(including employer
taxes) - - - - 374,820
COO severance
(including employer
taxes) - - - - 145,319
Professional fees
for potential
financing
transactions - - 564,588 - 564,588
---------- ---------- ---------- ----------- -----------
Adjusted Net Loss $(4,193,408) $(3,828,801) $(5,753,250) $(14,792,903) $(11,672,880)
========== ========== ========== =========== ===========
Diluted Weighted Average
Shares Outstanding 33,034,333 31,619,333 23,912,271 30,064,856 22,718,890
Adjusted Net Loss Per
Share $ (0.13) $ (0.12) $ (0.24) $ (0.49) $ (0.51)
========== ========== ========== =========== ===========
The Company defines adjusted EBITDA as net loss plus net interest expense, depreciation, depletion, and amortization ("DD&A") and accretion, amortization of right of use assets, income tax (provision) benefit, and other adjustments. Company management believes this presentation is relevant and useful because it helps investors understand Empire's operating performance and makes it easier to compare its results with those of other companies that have different financing, capital and tax structures. Adjusted EBITDA should not be considered in isolation from or as a substitute for net income (loss), as an indication of operating performance or cash flows from operating activities or as a measure of liquidity. In addition, adjusted EBITDA does not represent funds available for discretionary use.
Three Months Ended Year Ended
---------------------------------------- ------------------------------
September
December 31, 30, December 31, December 31, December 31,
------------ ------------ ------------ ------------- ---------------
2024 2024 2023 2024 2023
---------- ---------- ---------- ----------- -----------
Net Loss $(4,193,408) $(3,639,614) $(4,797,477) $(16,197,989) $(12,469,605)
Add Back:
Interest expense 268,694 196,306 328,445 1,515,269 1,000,427
DD&A 2,492,783 2,596,360 1,035,059 9,256,254 3,096,533
Accretion 519,827 509,131 478,881 2,006,756 1,756,022
Amortization of
right of use
assets 133,199 135,735 135,733 540,401 423,689
Income taxes - - 2,528 - (132,192)
---------- ---------- ---------- ----------- -----------
EBITDA $ (778,905) $ (202,082) $(2,816,831) $ (2,879,309) $ (6,325,126)
Adjustments:
Stock based
Compensation 519,060 335,077 855,514 2,155,774 3,144,751
(Gain) loss on
derivatives - (470,717) (1,253,708) 388,886 65,693
Settlement on or
purchases of
derivative
instruments - 281,530 (266,653) 18,200 (353,695)
(Gain) Loss on
financial
derivatives - - - 998,000 -
CEO severance
(including employer
taxes) - - - - 374,820
COO severance
(including employer
taxes) - - - - 145,319
Professional fees
for potential
financing
transactions - - 564,588 - 564,588
---------- ---------- ---------- ----------- -----------
Adjusted EBITDA $ (259,845) $ (56,192) $(2,917,090) $ 681,551 $ (2,383,650)
========== ========== ========== =========== ===========
View source version on businesswire.com: https://www.businesswire.com/news/home/20250327909010/en/
CONTACT: Mike Morrisett
President & CEO
539-444-8002
Info@empirepetrocorp.com
Kali Carter
Communications & Investor Relations Manager
918-995-5046
IR@empirepetrocorp.com
(END) Dow Jones Newswires
March 27, 2025 18:30 ET (22:30 GMT)
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